What You Need to Know About Your Title Insurance Company

Your Title Insurance Company Will Make Sure You Keep Your Home

Purchasing your New York home is an important decision. However, how does one know that the property they purchased has a clear title? Because unknown problems can be hidden in the history of a property's title, homeowners pay a title insurance company for title insurance.

Title insurance companies provide title insurance. Title insurance is an insurance policy that guarantees the property title is free from the problems of hidden liens and claims. The title insurance company searches public records for the property to make sure there are no problems in the title's ownership and history. The fee for title insurance is usually included in the itemization of closing costs from the lender and is a one-time fee. Possible hidden title problems your title insurance company may find can include:

·         Errors or omissions in deeds

·         Mistakes in examining records

·         Forgery

·         Undisclosed heirs

·         Liens for unpaid taxes

·         Liens by contractors

Title insurance pays title companies to search for problems in a property's title by examining public records. Title insurance companies routinely search public records for:

·         Deeds

·         Mortgages

·         Wills

·         Divorce Decrees

·         Court Judgments

·         Tax Records

·         Liens

·         Claims

·         Maps

By searching the history of the property's title, the title insurance company can assure the new owner of clear ownership to their new property and that no outstanding debts or unknown ownership issues are associated with their new New York home.

In addition, besides securing a good search on a property's title, the title insurance company will insure the property owner as long as they own the property. Therefore, if a problem arises later, the title insurance policy will cover legal fees in defense of a claim against the property that is covered under the title policy.

Think you have to settle for whatever title insurance company your lender puts in your closing papers? Not true! You have the right to choose your title insurance company. Look at shopping for title insurance below to find tips and information on how to shop around and save when purchasing your next property's title insurance policy.

Usually the title insurance company you will use is already put into the closing cost figures when buying a new New York home and most do not even give it a second look. Nevertheless, title insurance companies, like any insurance company, offer different costs and you have the right to choose what title insurance company you want to purchase your title insurance policy with.

Here are a few tips when shopping for a title insurance company:

1.     The choice of which title insurance company to select is yours, so contact more than one title insurance company to compare costs.

2.     If the property you are purchasing has been re-sold in the last 5 years check to see if the title insurance company will offer you a discounted rate

3.      Are you a first-time homebuyer? Then you may be eligible for an additional discount.

4.      See if the property insurance company you are selecting offers title insurance in order to get a better rate.

5.      As the property buyer, your title insurance should be for the full purchase price of the property. Be aware that sometimes the value of a home is less than the full purchase price.